Subject: Ancillary service awards for Frontera
From: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 1 Aug 2001 16:57:16 -0700 (PDT)

Jerrry,

See the attached megawatt awards for tomorrow.    We are talking with the Ercot staff regarding the settlement of this and the	OOM  (Out of Merit)  decrease for today.   It is our understanding,  per the protocols,  that when we are dispatched down the ISO keeps our $35  scheduled sale  whole.    We are paid this revenue stream (by our sale counterparty) PLUS the greater of:  the applicable balancing energy price for that hour or zero.    If you are decreased by 50 mw's for an hour you receive:
$35 sale + balancing $33.50 = 68.50/mw for not running your plant.   

For the capacity tomorrow,
We will reserve the mw's below and possibly sell the rest.    The Resource Plan is increased to reflect 400 mw's plus the awarded megs for each hour.    The EMS will only show 400 mw until we get deployed.  
  At the time of deployment,  we also receive the balancing energy price for the hour exercised.
We bid in a  Non-spin product which requires us to respond within 30 ".   They can take partial hours, at their option.

I hope this helps.

JFORNEY
Director, EPMI